Client Notice – CT Tax Rate Increases as of 07/01/2011

Effective July 1, 2011, the State of Connecticut’s general sales tax rate will increase to 6.35%. If you charge your customers Sales Tax you should look at your Sales Tax Codes in your ERP system and make any required adjustments, before you start invoicing for July.

The State has also changed the payroll taxes as follows : The number of income tax brackets was increased from three to six with the top marginal income tax rate increased to 6.7%. The new income tax rates are 3%; 5%; 5.5%; 6.0%; 6.5% and 6.7%. This change was retroactive to January 1,2011. New tax tables are available for the various ERP packages and I will contact each account about installing these new rate tables.

Special Note to my clients, this legislation doesn’t change the rate for Computer Data Services 1% or Accounting Services which are Sales Tax Exempt. For your convenience I have attached a copy of the State Legislation on my website on the link below.